Everyone knows it, even your kids.  There isn’t much young adults aren’t aware of these days.  Even when they’re ignoring you playing video games or listening to Miley Cyrus on their Ipod, they still know what’s going on in the outside world.  So how do you explain the decreased allowances, family nights spent renting movies, and maybe asking your college kids to pick up a part-time job?

Easy.  Be honest.

More than likely, the younger your children are, the more likely they are to overreact.  Reassure them that yes, there will still be dinner on the table, and yes, there still will be a Christmas.

However, with the older kids (especially those near colleged-age) it may be a good opportunity for them to learn the value of the Almighty Buck by picking up some odd jobs or a part-time job.  And be honest.  Make it clear that the problems you’re having are objective (affecting everyone) rather than subjective (affecting just you).  Because this is also a time for you to reflect on your financial situation and become more efficient, tell your kids that its a good idea for them to do the same thing.  Go over their spending habits (as well as yours), and work together to tweak them.

For more tips on working with your kids with money, have them check out these articles favorited by our readers:

10 Ways to Avoid Arguments With Your Parents About Money

The Psychology of Spending

Piggy Banks: What We Learned From College Students

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